2015 will not be as easy as 2014

Economic system discussion.
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MaxcoinBeliever
Posts: 30
Joined: Mon Oct 13, 2014 12:52 am

2015 will not be as easy as 2014

Post by MaxcoinBeliever » Mon Dec 29, 2014 3:16 pm

To all my friends and family

2014 was a great year but there is a storm brewing and I am willing to bet my credibility on 2015 being one of the most traumatic years, if not the most traumatic year you have ever witnessed. It is time to sit up and take notice of what could potentially unfold that will wipe out the majority of your net worth including your bank account balance and any pension you may have. I know this will come across as alarmist and I want you to know that I really DO intend to come across this way because you have much to lose, even if you think you don't. I am sick of warning people about what is coming and I want to write about it in a way that is somewhat technical but also put it in a way that most people should understand.

Now, before I get slammed for spreading fear I want you all to know that is not my intention. I do however want you to become educated on the subject of money and to understand what money actually is. I guarantee that most of you that say "but I do know what money is" actually don't know. I guarantee that 99 out of 100 people couldn't explain it. And from my experience people don't know what credit based money is and that the money they hold in their pocket is debt based money. Every piece of currency you hold, whether it has a queens head or a dead presidents head on it, IT IS NOT YOURS. it is owed by somebody to somebody. It is debt. The very creation of money is done at a printing press by a private entity that LENDS IT OUT AT INTEREST. Now, if you didn't know that you need to get reading and educate yourself quickly. So I dare you to read the rest of this article before criticising me.

In 1971 President Richard Nixon closed the gold window on the US dollar. Up until that point the US dollar was backed by gold to some level. This made the US dollar a fait currency (faith based money) meaning that no longer could you trade US dollars for gold on a fixed ratio (pegged). US dollars and therefore gold would be traded independently of one another and the federal reserve (a fraudulently named, privately owned central bank) could print more money than would have been otherwise possible. The US dollar is the worlds reserve currency and all other currencies are given a valuation based on US dollars. Essentially this meant that all currencies worldwide are now fiat. This is the first time in over 4,000 years that this has happened. Individual countries have dabbled with fait currency throughout history and in EVERY case they have failed within 45 years. The fait version of the US dollar and by extension the entire world has now existed for 44 years. But this is not my reason for thinking that 2015 will be the year of a massive financial collapse. I have many more reasons.

Most of this is unimportant, but what you do need to understand that real wealth is not measured in pieces of paper, it is measured in land, property, natural resources, gold, silver and anything tangible that can be traded because of its sacristy or it's usefulness. It has always been this way. The notion of a worldwide fait currency is an entirely new concept and has never been tried before in human history!

In 2008 the world got a shock when several of the largest banks in the world went bankrupt because of the subprime mortgage crisis. This wasn't the first time this has happened and it won't be the last. The only difference with the 2008 crisis and all of the crises before is that the 2008 crisis is far from solved and it has been getting worse. Usually after a problem this big the governments and agencies responsible for regulating the industry slap restrictions on what the banks can and cannot do. Some restrictions were implemented but this was drowned out by the actions of the governments and central banks. Instead of punishing these institutions by allowing them to go broke they were given massive bailouts. Banks considered "too big to fail", the worlds largest insurance company AIG, General Electric (the worlds largest company), General Motors and many, many more were injected with cash to offset against the liquidity leaving the market in a hurry. The world was about to go bankrupt.

So that should be the end of it right? Wrong! In fact the crisis still exists today and has got much worse. And if you think that our good old friend Obama wrote a big fat cheque to bailout these companies and washed his hands of it you are wrong, but let's not put the blame on him, or professor Bush for that matter. One cheque did not cover it. The market was so shaken that the cheques are still being written to this day. Trillions of dollars have been spent through TARP, QE1, QE2, operation twist and QE3 to keep the entire economy propped up. We are now at the end of QE3 and the Federal Reserve is about to turn off the spigot (or so they would have us believe) and their balance sheet now sits at over 4 trillion dollars not to mention the US treasuries debt is over 14 trillion and the budget is still running a deficit.

But this is all small change compared to the derivatives market. The derivatives market is basically a casino. You leverage up your investment and place your bet on what you may think the market will do, a day, a month, a year from now. Or even better you margin trade at 50x or 100x your capital and get fleeced by the brokers who have complete visibility over the order book and flash a price to trigger your stop loss. Insta kill! So considering the Feds balance sheet of 4 trillion, and the US national debt of 14 trillion or the 5 trillion traded daily on the forex market, how much do you think is tied up in the derivatives market? 50 trillion? 100 trillion? Not even close. Some estimates are as high as over 2 quadrillion. Let's see, that's 2 thousand trillion, or 2 million billion, or 2 with 15 zeros... Hmmmm, $2,000,000,000,000,000... And since there are two sides to every trade and it's basically a bet on a future outcome then it really is a casino where one person wins for every one that loses. Now with market volatility as it is today, leveraged speculation that gets stopped out and margin calls, think how quickly things could go from bad, to worse, to flat out broke.

So what is the harm? Well for one, how do you think your pension portfolio goes up and down? Yep, derivatives. Basically everything traded on the markets these days are derivatives. When you invest in oil, cocoa, sugar, wheat etc... Do you take delivery? Does someone dump 50 barrels of oil on your driveway when you buy it on the commodities markets? No! Imagine the pain of trying to sell it again and transport it. That's why you trade online through a broker who represents the goods and services the industry provides. That's a derivative. It's price is derived from real assets or equities.

Recently the price of oil has dropped substantially and while that may seem good for filling your oil tank or putting fuel in your car, imagine the impact it is having on Russia, Alaska or Saudi Arabia. The ruble went free-fall a week before Christmas. What about fracking? Not looking so hot now is it? But this doesn't just affect oil rich countries. What about the derivatives market for oil? Some financial institutions would have booked a huge loss on their balance sheets. For every winner there is a loser. But the knock on effects on currencies and the increase in volatility could start a contagion that spreads throughout the financial sector in western countries and the effects of this may not be known for months. Some could be insolvent right now, or very soon.

This is a drop in the ocean compared to the currency markets, like I said before 5 trillion a day. With derivatives on top of this and stop losses getting hit one after the other and then a bond sell off the world could wake up dead. It is not impossible to imagine that the whole system that took hundreds of years to build could come crashing down within an hour.

So what, it's your pension that's at risk? No, it's your bank account too, since you are now an unsecured creditor to the bank and since we know how Cyprus went down we can safely assume that your hard earned money is at risk too. Provisions have been put in place all across the world that creditors get a hair cut before shareholders and bond holders. And even if your bank account has nothing in it and you live week to week anyway imagine what would happen to your way of life if businesses you rely on suddenly find themselves unable to access capital for day to day operations or for the wages of their employees. That's all I'm going to say on that subject.

I have talked to people who try to defend the stability of this failing system. Saying things like the government won't let that happen or the banks are too smart to lose money. I have even had someone of inferior intelligence lecture me on how the derivative market is projected to expand exponentially forever. This isn't algebra 101 it's real life where exponential growth forever is impossible. It won't be the end of the world but times could get very hard and 2015 could be the year. But remember this, more millionaires were created during the Great Depression than any other time in history. They researched the situation and used it to their advantage. So it's not all bad, right! Prepare now, you don't know when you will need it, but it's there as your safety net if you ever do.

So wake the hell up, now!

What can you do to protect yourself? Get out of debt as much as possible, you don't want creditors chasing you when you already have very little for yourself and your family. Invest in real money, for example gold and silver, the price has been manipulated lower for the past few years, so it's like a gift from god. Buy physical, not paper gold. Maybe it's also worth taking a punt on crypto currencies like Bitcoin, Maxcoin and StartCOIN. Crypto currencies could potentially be the big winner, but it is a risk, so invest what you can afford to lose. Having cash is good too (in your hand, not in a bank). In a deflationary environment or if banks confiscate wealth then having some cash to hand will be a lifesaver. But for god sake diversify. Don't put all your eggs in one basket.

If the SHTF then you will need friends, family, community and cooperation. But those are things we need all the time anyway :)

Take care, live long and prosper!

Stuart

ReloopAudio
Posts: 5
Joined: Fri Oct 17, 2014 1:42 pm

Re: 2015 will not be as easy as 2014

Post by ReloopAudio » Thu Jan 01, 2015 9:05 pm

Great article and very well written. You can expect far more Geo-political tensions & state/media censorship/propaganda to protect corporate & financial interests, that's for sure. The global economy is out of control, currency wars are just the start of what's to come & 2015 may well be the year it all goes down in flames

MaxcoinBeliever
Posts: 30
Joined: Mon Oct 13, 2014 12:52 am

Re: 2015 will not be as easy as 2014

Post by MaxcoinBeliever » Thu Jan 01, 2015 11:57 pm

ReloopAudio wrote:Great article and very well written. You can expect far more Geo-political tensions & state/media censorship/propaganda to protect corporate & financial interests, that's for sure. The global economy is out of control, currency wars are just the start of what's to come & 2015 may well be the year it all goes down in flames
Thanks Jay! :D You are absolutely right. The powers that be will continue to try to paper over the problem or obfuscate the facts by diverting our attention from the real problems. I hope to god that I am wrong, but one thing is for sure. The whole system is coming down. It's just a matter of time! If not in 2015, then 2016, 2017...

Don't be fooled people!

Bjorn
Posts: 41
Joined: Sun Nov 16, 2014 7:36 pm

Re: 2015 will not be as easy as 2014

Post by Bjorn » Fri Jan 02, 2015 9:17 pm

I think that the collapse will begin with the fall of the dollar.

The dollar is a sick joke. The $US is really the most worthless currency on the planet, with $18 trillion debt that they will soon default on. They have a dying economy and a state of civil war (soon, people vs government).

BRICS will kill it soon.

Yet the dollar goes up against all currencies! And gold, the indicator of global health, goes down... Anyone who thinks the whole financial system is not manipulated is surely a bankster from Goldman Sachs. But they can only manipulate it so much, until finally: boom, crash...! Goodbye and good riddance to US control of the world.

But sadly the people who don't have Maxcoin will pay the big price, not the ones who caused all this (banksters).

MaxcoinBeliever
Posts: 30
Joined: Mon Oct 13, 2014 12:52 am

Re: 2015 will not be as easy as 2014

Post by MaxcoinBeliever » Sat Jan 03, 2015 1:33 am

Bjorn wrote:I think that the collapse will begin with the fall of the dollar.

The dollar is a sick joke. The $US is really the most worthless currency on the planet, with $18 trillion debt that they will soon default on. They have a dying economy and a state of civil war (soon, people vs government).

BRICS will kill it soon.

Yet the dollar goes up against all currencies! And gold, the indicator of global health, goes down... Anyone who thinks the whole financial system is not manipulated is surely a bankster from Goldman Sachs. But they can only manipulate it so much, until finally: boom, crash...! Goodbye and good riddance to US control of the world.

But sadly the people who don't have Maxcoin will pay the big price, not the ones who caused all this (banksters).
Bjorn,

I somewhat agree. I believe that the US dollar is worthless, but the markets disagree and I can see their point of view. Until the USD loses it's hegemony as the worlds reserve currency it will be seen as a safe haven asset, which is ridiculous. I believe that Russia or China (or both) declaring their holdings of gold and backing their currency with gold could upset the balance and prove to be the straw that broke the camels back. It should be worthless right now because like you say "They have a dying economy and a state of civil war (soon, people vs government)". I don't see any value in it and it's clear neither do you, but the financial world will keep it propped up until they simply can't anymore, until a safer haven currency emerges backed by real value. With the accumulation of gold in the east and the bill to audit the Federal Reserve in the west, we could see a showdown very soon. It could flip like a switch, and then, hold on tight. It's over in the blink of an eye!

Indeed it is the BRICS that will cause the demise of the USD, it's their move, the ball is in their court. But I believe the dollar would be the last currency to fall, just as the BRICS take action.

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